What Is Constructive Dismissal?
Constructive dismissal occurs when your employer commits a fundamental breach of contract, and you resign in response to that breach. A fundamental breach is behaviour so serious that it destroys the trust and confidence between you and your employer.
Examples of Behaviour That May Amount to Constructive Dismissal
1. Bullying or Harassment
If your employer ignores or contributes to bullying, this may be a breach of their duty of care.
2. Discrimination
Unlawful discrimination based on protected characteristics can justify resignation.
3. Unfair Disciplinary or Performance Processes
If your employer uses:
- Biased investigations
- Pre determined outcomes
- Retaliatory processes
…this may be a breach of trust.
4. Sudden or Unreasonable Contract Changes
Such as:
- Pay cuts
- Reduced hours
- Demotion
- Forced relocation
- Changes to duties
Without consultation or agreement.
5. Ignoring Grievances
If your employer refuses to investigate serious concerns, this may be a breach.
6. Unsafe Working Conditions
Failing to protect your health and safety can justify resignation.
7. Victimisation
Punishing you for raising concerns, whistleblowing, or supporting a colleague's complaint.
Your Rights If You Believe You've Been Forced to Resign
You may have the right to claim constructive dismissal if:
- Your employer committed a serious breach
- You resigned because of that breach
- You did not delay too long before resigning
- You have 2+ years' service (unless the breach is automatically unfair)
Automatically unfair reasons include:
- Whistleblowing
- Health & safety concerns
- Trade union activity
- Pregnancy or maternity
- Discrimination
What Counts as a Fundamental Breach of Contract?
A breach may be fundamental if your employer:
- Breaks an express term (e.g., pay, hours, duties)
- Breaks an implied term (e.g., trust and confidence)
- Acts in a way no reasonable employer would
- Fails to protect you from harm
- Treats you unfairly or inconsistently
The breach must be serious enough that continuing employment is unreasonable.
How to Protect Yourself Before Resigning
Resigning too quickly can weaken your case. Before resigning, consider:
1. Raise a Formal Grievance
This shows you tried to resolve the issue internally.
2. Keep Detailed Evidence
Record:
- Dates
- Times
- What happened
- Witnesses
- Emails and messages
3. Follow Up in Writing
Confirm conversations and concerns in writing.
4. Request Reasonable Adjustments (If Relevant)
Especially for disability related issues.
5. Seek Advice Early
Constructive dismissal cases are complex — early guidance is crucial.
How to Resign If You Decide to Leave
If you choose to resign, you should:
- State that you are resigning due to a fundamental breach of contract
- Explain the breach clearly
- Resign promptly after the breach
- Keep a copy of your resignation letter
Compensation for Constructive Dismissal
If successful, you may receive:
Basic Award
Compensatory Award, covering:
- Lost earnings
- Loss of benefits
- Future loss of earnings
- Pension loss
- Injury to feelings (if discrimination involved)
Constructive Dismissal FAQs
- You must not wait too long before resigning
- 2 years' service is not needed for automatically unfair or discriminatory breaches
- You can claim if resignation was caused by employer-driven stress
- Being pressured or sidelined may amount to constructive dismissal